What are the primary lines of business of these two companies as shown in their notes to the financial statement?

1. Which company has the dominant position in their industry?

2. What are the gross profits, operating profits, and net income for these two companies?

3. Compute both companies' cash coverage ratio, current ratio, and free cash flow.

4. What ratios does each of these companies use in the Management's Discussion and Analysis section of the annual report to explain their financial condition related to debt financing (meaning you MUST find each of the two firms' annual reports)?

5. What are the gross profits, net income, EBIT, EBITDA, and free cash flow (FCF) for these two companies?

6. For both companies, compute:

   1. • current ratio;

      • quick ratio;

      • total debt ratio;

      • debt-equity ratio;

      • total asset turnover;

      • inventory turnover;

      • day’s sales in inventory;

      • the profit margin on sales;

      • return on assets; and

      • return on equity.

7. Fully explain what each ratio is telling you (NOT just a definition), but relevant to your firms.

Complete your study with a full DuPont Model.

Specifically, after calculating the ratios, explain what each tells you about the company, and compare/contrast with the other company. For example, when discussing the day’s sales in inventory and inventory turnover, indicate where and why there might be a significant difference between the two companies you have selected.